That market is less susceptible to interest rate swings and mortgage affordability
The opinions vs the new reality since the first answer in 2007 are pretty funny! For the most part, no market will evade a recession as deep as this one.
Rancho Santa Fe....wow almost half off the highs and the foreclosures keep piling as owners walk away. If you have a good agent that knows the sub markets in the county, you can definitely get a nice deal right now.
It's been a year since you asked this question, and the results are now mixed. If a luxury home bargain in San Diego is the goal, it can be found. However, that bargain will likely not be near the coast.
There are luxurious and large newer homes further east in San Diego County where you can find short sales, foreclosures and slashed pricing. Some remarkable bargains can be found, where luxury homes are less than 12 miles to the beach.
The coastal market is holding steady, with single family home pricing remaining relatively flat. The beach-close condo market has softened somewhat--especially with one-bedroom units.
$ 6,889,000, and the last one a whooping $ 17,000,000. Not so terrible. And I am not counting condominiums and townhomes.